The government of South Korea has announced it will introduce more strict regulations over crypto exchanges. The recent $31 million hack of Bithumb will accelerate the process of crypto law implementation.
The security and infrastructure of the market will be improved with KFIU and the Financial Services Commission (FSC) participation. According to the new rules, exchanges will be banned unless fitting with the security standards that apply to financial institutions. Now cryptocurrencies exchanges are regulated as service providers, and everyone can launch their own crypto trading platform paying about $30 to become a vendor. State institutions and financial bodies do not have the authority to directly regulate them.
Hani, a major media outlet in Korea, outlined:
“We fully understand that the government is reluctant towards regulating the cryptocurrency market because it will inevitably lead investors to consider it as the government’s way of legitimizing the market. But, if the government leaves the cryptocurrency market unregulated, it is simply leaving it vulnerable to various issues.”